Search terms: Commercial Property, Germany
A Federal Civil Court decision on the long-standing law against unlicensed legal advice has far-reaching effects. Essentially, it renders null and void any contract between an acquirer of property and an agent who, although unqualified to do so, is charged with signing contracts on his behalf. The decision also affects companies such as banks which have provided credit.
The Rostock Court of Appeal recently issued a strict interpretation of the formal requirements governing lease contracts, which many existing contracts will not meet. The ruling could have devastating consequences for commercial landlords, as many tenants may now seize the chance to terminate their leases in order to renegotiate more favourable terms or move to cheaper spaces.
The plaintiffs in an ongoing action purchased a unit in a closed-end real estate fund, funding the transaction with a loan secured by a land charge. They later revoked the loan agreement under the Law on the Revocation of Door-to-Door and Similar Dealings, but the Munich Court of Appeal eventually held that they were not entitled to do so, since this law did not in fact apply.
A recent European Court of Justice decision has had far-reaching effects on the purchase of real estate financed through borrowings and prompted the German Parliament to make extensive legislative amendments. The main issue involved when a door-to-door sales contract can be revoked.
A Federal Court of Justice decision which extends the scope of application of the national consumer protection laws to non-commercial civil law partnerships has implications for real estate funds, a popular form of investment in real estate. The decision affords them the opportunity to get out of unfavourable contracts.
Including: Real Property Law; Acquisition of Real Estate; Landlord and Tenant Law